Is the investment of
corporate funds directly in external startup companies?
Practice where a large firm
takes an equity stake in a small but innovative or specialist firm, to which it
may also provide management and marketing expertise; the objective is to gain a
specific competitive advantage.
To share their technology, their market access in order to generate more opportunities for each of the firms.
A great example here is Tesla Motors. Tesla has a strategic partnership with Toyota where they are helping to develop and provide components for Toyota's electric vehicles. So all of Tesla's expertise in battery technology in the like can be used in that partnership and both companies are obviously benefiting from this exchange of ideas, intellectual property etc
To share their technology, their market access in order to generate more opportunities for each of the firms.
A great example here is Tesla Motors. Tesla has a strategic partnership with Toyota where they are helping to develop and provide components for Toyota's electric vehicles. So all of Tesla's expertise in battery technology in the like can be used in that partnership and both companies are obviously benefiting from this exchange of ideas, intellectual property etc
